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MARKET UPDATE 10.12.2012

2012-12-10 07:14 GMT

Italian PM Monti announces intention to resign; early elections likely in February

The political news coming from Italy, in which current primer minister Mario Monti plans to resign once the 2013 budget goes through parliament and is approved, are not sitting well with the Euro, as investors anticipate it may lead to a new chapter in the EU crisis. The prospects of higher Italian bond yields when Europe opens weighs on the Euro. The Italian general elections, upon final confirmation, will likely be celebrated in February. Former primer minister Silvio Berlusconi is to run as centre-right candidate, and with the threat of an 'Il Cavaliere'-led anti-euro campaign looming, traders have logically turned cautious. The leading centre-left PD party is still in control, with Berlusconi's centre-right PDL behind by over 16 points.

According to NAB: "Prospects of Italian bond yields spiking higher when Europe opens is driving the euro lower. EUR bears would though do well to note that the People of Liberty party currently trails the centre-left Democratic party by 20% points. Plus, the re-appearance of Mr Berlusconi to the centre of the Italian political stage may well prompt Mr Monti to make him himself available for re-selection as PM after elections now seen likely to occur next February, three months earlier than originally intended." - FXstreet.com

2012-12-10 13:15 GMT

Canada.Housing Starts s.a (YoY) (Nov)

2012-12-10 17:15 GMT

UK.BoE's Governor King Speech

2012-12-10 21:00 GMT

Australia.REINZ House Price Index (MoM) (Nov)

2012-12-10 21:45 GMT

Australia.Electronic Card Retail Sales (MoM)/(YoY) (Nov)

2012-12-10 05:33 GMT

GBP/USD outlook bearish below 1.6065 – V.Bednarik

2012-12-10 04:41 GMT

EUR/JPY offered toward 106.00; yen more bid

2012-12-10 03:49 GMT

EUR/USD bears beware ahead of Spanish bailout - UBS

2012-12-10 02:26 GMT

AUD/USD slips to 1.0465 on downbeat China trade numbers

AUDUSD
1.04799 / 810
NZDUSD
0.83255 / 268
USDCHF
0.93541 / 551
USDCAD
0.98744 / 753
GBPJPY
132.119 / 132
EURCHF
1.20744 / 754
GOLD
1708.88 / .16
SILVER
33.25 / .27
EURUSD HIGH 1.29157 LOW 1.28871 BID 1.29066 ASK 1.29074 CHANGE -0.13% TIME 08:12:00

OUTLOOK SUMMARY

Down

TREND CONDITION

Downward
penetration

TRADERS SENTIMENT

Bullish

IMPLIED VOLATILITY

Low

MARKET ANALYSIS - Intraday Analysis

Pair is losing its neutral structure, as the price has tested new lows today. Next immediate support locates at 1.2888 (S1). Break here is required to enable bearish pressure towards our targets at 1.2867 (S2) and 1.2846 (S3).

Resistance Levels: 1.2929, 1.2952, 1.2971

Support Levels: 1.2888, 1.2867, 1.2846

GBPUSD HIGH 1.60426 LOW 1.60172 BID 1.60240 ASK 1.60247 CHANGE -0.07% TIME 08:12:01

OUTLOOK SUMMARY

Down

TREND CONDITION

Downward
penetration

TRADERS SENTIMENT

Bearish

IMPLIED VOLATILITY

Low

Bearish penetration below the support at 1.6007 (S1) might determine negative sentiment for the remaining of the day with possible targets in focus at 1.5994 (S2) and 1.5982 (S3) intraday.

Resistance Levels: 1.6041, 1.6057, 1.6070

Support Levels: 1.6007, 1.5994, 1.5982

USDJPY HIGH 82.639 LOW 82.374 BID 82.410 ASK 82.415 CHANGE -0.07% TIME 08:12:04

OUTLOOK SUMMARY

Sideway

TREND CONDITION

Sideway

TRADERS SENTIMENT

Bullish

IMPLIED VOLATILITY

Low

We are not expecting significant price deviation later on today, though risk of positive tone establishment is seen above the next resistance level at 82.57 (R1). Any penetration above this level would put in focus higher targets at 82.68 (R2) and 82.77 (R3).

Resistance Levels: 82.57, 82.68, 82.77

Support Levels: 82.30, 82.20, 82.11

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